<p>CC frequent-fliers know that I harp on the growing gap in income and wealth between the very rich and the middle class and poor in America. Sparknotes version: Up until about 1980 the economic “rising tide lifted all boats” - that is, as the nation’s wealth grew, all segments of society shared in that growth - the rich got richer, the middle class got better off, and the poor got, well, less poor.</p>
<p>Around 1980 that stopped. Since then, all of the increase in wealth and income has been enjoyed solely by the wealthy. Example: in 1980 the top 1% of taxpayers received 8.5% of the nation’s income. In 2005, the top 1% received over 21% of the income. The inflation-adjusted income of the American taxpayer at the 75th percentile hasn’t changed in 25 years The inflation-adjusted income of the taxpayer at the 50th percentile has actually declined over that period – while the inflation adjusted income at the 99th percentile has increased by 60%. Some CC posters have suggested that this “just happened” and it’s not government’s job to do anything about it. </p>
<p>Well, government, in large part, caused it to happen. How? Well, Sen. McCain’s economic policy, as presented in a recent speech, is a pretty good outline of a few of the most obvious ways to increase the gap:
Yep. That’ll do it. I guess he’s gunning for 50% of the nation’s income for the top 1%. Ya think?</p>
<p>kluge, aren’t our corporate taxes a large part of the reason that American companies have shipped their operations overseas? I understand that cheap labor is a factor, but aren’t the taxes also an issue?</p>
<p>kluge is stuck on this “the rich don’t deserve what they have thing”. Search for posts under the username and you will get a glimpse of it. Facts be damned…the rich need to give back more of their money. I have enjoyed the debates but this is the common theme to everything.</p>
<p>Admittedly my info comes from a HS economics class and it’s reading list…</p>
<p>McCain made a comment to the effect of that Obama was naive when it came to his views on taxation. I’m an Obama fan but I thought he had a point.</p>
<p>Many countries are on our tail, we are no longer the default powerhouse. To discourage growth in out economy through heavy taxation seems like a mistake. We have killed the middle class the OP seeks to help by encouraging corporations to conduct an increasing amount of operations outside of the US. By making it hard for them to pay good wages and compete on a global basis.</p>
<p>I also think a flat tax is fair. People who make a lot of money put much of it back into the economy and then pay taxes on money they’ve already been taxed on when they die!</p>
<p>I agree that a flat tax would be the fairest model. It would likely mean that people that make under a certain cap pay nothing and it starts off at some pre-determined floating number. At least that way no one could complain. A better way could still be a national sales tax. Essentially a consumption tax. Make what you can…pay when you buy.</p>
<p>Around 1980 was the beginning of the tech revolution and the creation if incredible wealth that companies shared broadly through stock options–something that was new to corporate America. Other areas that had a great growth in pay were entertainment, sports, and yes corporate CEO pay and such. So lets get a list of these rich people and see who is worthy and who is in the Paris Hilton class. I think you will be surprised.</p>
<p>Kluge, The problem is that the gap doesn’t accelerate fast enough. At this rate, it will take another hundred years for most of us to be told to eat cake if bread is not available. I don’t expect the rich are satisfied yet.</p>
<p>Kluge does not like the gap between the rich and poor in American so he supports the government taking money earned by rich people and giving it to the poor. Sounds like a Robin Hood approach. </p>
<p>If poor people want to earn more money, they should behave like rich people, namley, finish high school, learn a trade or go to college, show up to work on a regular basis, work hard, and stop expecting someone else to take care of you.</p>
<p>There is no politican who can pass a law altering the laws of supply and demand. In a global economy, unskilled labor in China can compete with unskilled labor in America. Manufacturers won’t pay unskilled labor in America $20 per hour to build a product if they can pay a Chinese worker a dollar per hour to build the same product. It isn’t government’s responsibility to force new skills on to low income people, it’s the responsibilities of those low income people to develop new skills that are valuable in a global economy.</p>
pmrlcomm, this makes so much sense. Is it just too simple? It would take away the problem of people not being taxed on unreported income, criminal income, etc. I know that you’d have to find a way to exempt lower-income citizens, but that couldn’t be as complicated as what he have now.</p>
<p>When we lived in Germany for a time, I remember that they had a Value Added Tax (VAT), which is like a sales tax but I remember there were differences and some people sure don’t like it.</p>
<p>The way you exempt the lower income individuals is to exempt basic staples of life for everyone, bread, milk, electricity, etc… If they want to buy that flat screen tv with their money let them pay taxes.</p>
<p>^^I don’t see why bread, milk and electricity should be excluded. They are not my staples. I am intolerant to lactose. I rarely eat bread. I certainly don’t have my air conditioning on like my neighbors. Let us make tax really equitable for those who want to spend the tax on. Put most of the tax on people who wanted the war in Iraq.</p>
<p>Moreover, I don’t have kids in K12 anymore. Do away with any tax that funds these schools. Let those who have kids pay for them. Oh, here is another item. Get rid of law enforcement. Those who need it can pay for it privately as well.</p>
<p>Most national sales tax proposals that have been floated have some concept of tax exemption for necessities. Sometimes instead there is a tax rebate for people below a certain income level.</p>